COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:2721H.02C Bill No.:HCS for HB 1216 Subject:Environmental Protection; Waste - Hazardous Type:Original Date:April 3, 2025Bill Summary:This proposal creates provisions relating to a post-consumer paint recycling
program.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Administrative Fee
Fund (Unidentified)*$0$0$0
Total Estimated Net
Effect on Other State
Funds $0$0$0
*Fund for the administrative fee to be deposited into has not been identified. Income and costs
are assumed to net to zero starting in FY 2027.
Numbers within parentheses: () indicate costs or losses. L.R. No. 2721H.02C
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Administrative Fee
Fund (Unidentified)0 FTE1 FTE1 FTE
Total Estimated Net
Effect on FTE0 FTE1 FTE1 FTE
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 2721H.02C
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FISCAL ANALYSIS
ASSUMPTION
§701.151 – Post-Consumer Paint Recycling Program
Officials from the Department of Natural Resources (DNR)
this proposal:
Section 701.151.3 (3)
The independent financial auditor required under paragraph (g) of subdivision (2) of this
subsection shall be selected by the representative organization after consultation with the
department. The independent financial auditor shall verify that the cost added to each unit of
paint will cover the costs of the program. The department shall review the work product of the
independent financial auditor. The cost of any work performed by such independent financial
auditor shall be funded by the paint assessment fees authorized by the program.
The department will review and comment on the selected auditing firm and review work product.
The department anticipates being able to absorb these costs with current appropriation authority.
However, until the fiscal year 2026 budget is final the department cannot identify specific
funding sources.
Section 701.151.4 (1)
The department shall establish an administrative fee to be paid by each producer or
representative organization submitting a plan under this section. The department shall set the fee
at an amount that, when paid by every producer or representative organization that submits a
plan, is adequate to reimburse the department's full costs of administering this section. The total
amount of annual fees collected under this subdivision shall not exceed the amount necessary to
reimburse costs incurred by the department to administer this section. The department may
consider relevant factors when establishing the fee including, but not limited to, the portion of
architectural paint sold in the state by the producer, or the members of the representative
organization compared to the total amount of architectural paint sold in the state by all producers
or representative organizations submitting a plan.
If the proposal is passed by the legislature and signed into law, beginning in FY 2026 the
Department will be required to undergo the rulemaking process to establish the administrative
fee. This will likely entail informal and formal stakeholder meetings, the drafting of the
regulation and the ushering of the rule package through the formal rulemaking process. A portion
of an FTE will be required to implement these additional rulemaking efforts. The Department
anticipates being able to absorb these costs. However, until the fiscal year 2026 budget is final
the Department cannot identify specific funding sources.
Since this legislative proposal is aimed at recycling non-hazardous paints, the Department
believes the funds should be directed into a sub-account of the Solid Waste Management Fund L.R. No. 2721H.02C
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0570. This administrative fee shall not exceed five percent of the aggregate program fee added to
the cost of all architectural paint sold by producers in the state for the proceeding calendar year.
Section 701.151.3 (1)
A representative organization or a producer of architectural paint sold at retail in this state that is
not a member of such representative organization shall develop and submit to the director for the
director's approval a plan for the establishment of a post-consumer paint collection program.
Section 701.151.3 (5)
No later than sixty days after the submission of a plan under this section, the director shall make
a written determination of whether to approve the plan as submitted or disapprove the plan. If the
director finds the plan does not meet the requirements of this section, the director shall provide a
written explanation of the nonconforming items. Within sixty days following receipt of the
director's written explanation of items that do not meet the requirements of this section, the
representative organization or the producer of architectural paint shall submit a revised plan to
the director for approval.
Section 701.151.3 (6)
The department shall enforce the producer's or the representative organization's compliance with
the plan and may, by regulation or by using existing regulations promulgated under Sections
260.230, 260.240, and 260.249, RSMo., establish enforcement procedures and penalties.
The Department will review, comment and approve the post-consumer paint collection program
plan submitted by the representative organization or paint producers.
The proposal also directs the Department to investigate compliance concerns and undertake any
related enforcement actions. The Department anticipates there would be a fiscal impact to
implement the new provisions in section 701.151.3(1), (5), and (6).
Section 701.151.7 (6)
Financial, production, or sales data reported to the department by a producer or by the
representative organization shall not be subject to disclosure, but the director may release a
summary form of such data that does not disclose financial, production, or sales data of the
producer, retailer, or representative organization.
The Department’s understanding of this section is that the representative organization will be
responsible for redacting all confidential business information and creating a summary report. If
the intent is for the Department to conduct a legal review for redacting documents, the
Department would anticipate a fiscal impact.
Cost assumption:
As the Department is unable to quantify the number of paint producers in Missouri nor the level
of effort to administer the program, the Department can identify, at a minimum, a need for 1 L.R. No. 2721H.02C
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FTE; Environmental Program Analyst at an annual salary of $57,768*. The Department will be
reviewing, commenting and approving the plan(s) submitted by the representative organizations
or producers and all future annual reports.
The Department would continue to ensure adequate record keeping and documenting the final
disposition of materials collected by the producers. The Department shall enforce the producer’s
or the representative organization’s compliance with the post-consumer paint collection program
plan. The Department will manage the new Administrative Fee Fund and set the annual
administrative fee.
Activities to be performed by the 1 FTE would start in FY 2027 and continue on an on-going
basis.
As the total amount of annual Administrative fees collected under this subdivision "shall not
exceed the amount necessary to reimburse costs incurred by the department to administer the
new post-consumer paint collection program", fee revenues equal annual Department
expenditures (net $0 impact to the Administrative fee fund).
Oversight does not have information to the contrary and therefore, Oversight will reflect the
estimates as provided by DNR.
Rule Promulgation
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS is provided with core funding to handle a certain
amount of normal activity resulting from each year's legislative session. The fiscal impact for
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also recognizes that many such bills may be passed by the
General Assembly in a given year and that collectively the costs may be in excess of what the
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding
for the cost of supporting administrative rules requirements should the need arise based on a
review of the finally approved bills signed by the governor. L.R. No. 2721H.02C
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028ADMINISTRATIVE FEE FUND
(UNIDENTIFIED)
Revenue – §701.151.4 - DNR –
administrative fee to offset costs of
program$0$98,852$100,829
Cost – DNR Personnel Service$0($58,923)($60,102) Fringe Benefits$0($35,484)($36,193) Expense and Equipment$0($4,445)($4,534)Total Cost – DNR$0($98,852)($100,829)FTE Change0 FTE1 FTE1 FTEESTIMATED NET EFFECT ON
THE ADMINISTRATIVE FEE
FUND $0$0$0
Estimated Net FTE Change to the
Administrative Fee Fund0 FTE1 FTE1 FTE
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
Small businesses that produce and/or sell paint could be impacted as a result of this proposal.
FISCAL DESCRIPTION
This bill authorizes producers of architectural paint sold at retail to establish or join a nonprofit
representative organization. The representative organization and any producer not a member of
such organization must submit a plan for the establishment of a post-consumer paint collection
program to the Department of Natural Resources. The program must be structured to reduce the L.R. No. 2721H.02C
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generation, promote the reuse and recycling, and manage the waste stream of post-consumer
paint.
The plan must include specified items including a list of participating producers and brands,
information on the types of architectural paint products covered under the program, and a
description of how the program will provide for convenient cost effective statewide collection of
post-consumer paint in this state and the education and outreach efforts to inform consumers
about the program. The plan must be reviewed by an independent financial auditor selected by
the representative organization to verify that the paint assessment fees will cover the costs of the
program.
No later than 60 days after the submission of a plan, the Department Director must make a
determination of whether to approve the plan as submitted. If the director finds that the plan does
not meet the requirements, he or she must provide a written explanation and the organization or
producer has 60 days to revise the plan.
The Department must enforce compliance with the plan as specified in the bill. The plan must be
submitted within 12 months of the effective date. At the time the plan is submitted and annually
thereafter, each producer submitting a plan must pay an administrative fee as set by the
Department according to the bill.
Each producer must include in the price of any architectural paint sold to retailers and
distributors the per-container amount, known as the paint assessment fee, in the approved plan.
The retailer or distributor may not deduct the amount from the purchase price. Retailers may
incorporate the fee as part of the price but are not required to. No paint may be sold in the state
unless the producer of a paint brand or a representative organization is implementing or
participating in the program.
A paint collection site may not charge any additional amount for the disposal of paint when the
paint is offered for disposal. A producer or the representative organization that organizes the
collection, transport, and processing of post-consumer paint may not be liable for any claim of a
violation of antitrust, restraint of trade, unfair trade practice, or other anticompetitive activity
arising from conduct undertaken in accordance with the program.
Before March 31st of each year, the producers or representative organization must submit an
annual report for the previous year to the Director that details the program. The bill specifies the
information required to be included in the report. The producers or the representative
organization must implement the program on January 1, 2027, or six months after the approval
of the plan, whichever occurs later.
Generators of household wastes and conditionally exempt small quantity generators may
transport or send architectural paints to a paint collection site to the extent permitted by a
program. Paint collection sites may collect and temporarily store architectural paints generated
by certain entities in lieu of any otherwise applicable requirements of state laws or regulations. L.R. No. 2721H.02C
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The program does not restrict the collection of architectural paint by a program where the
collection is authorized by any other state laws or regulations or affect any requirements
applicable to facilities that treat, dispose, or recycle architectural paint under any other state laws
or regulations.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Natural Resources
Office of the Secretary of State
Joint Committee on Administrative Rules
Julie MorffJessica HarrisDirectorAssistant DirectorApril 3, 2025April 3, 2025